Yesterday’s signals were not triggered, as none of the key levels identified were reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $12,288 or $12,105.
- Put the stop loss $50 below the local swing low.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
Short Trade Idea
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $14,058.
- Put the stop loss $50 above the local swing high.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
BTC/USD Analysis
I wrote yesterday that the former resistance level at $13,218 had been invalidated and the price had room to rise all the way to $14,058 before hitting another obvious resistance level. However, I also noted that the price was just moving up slowly and had been for a few days.
I still think it makes sense to look for a long trade, which might be found after a deep retracement to $12,288 or alternatively after a breakout to a new high above $13,368. The breakout method is probably safer, so I will be happy to enter a long trade if get two consecutive hourly closes above $13,368 provided the price is at a level which is not too close to the next resistance level at $14,058.
A bearish reversal at $14,058 might also be a good short-term short trade if the reversal is very strong.
Regarding the USD, there will be a release of Durable Goods Orders at 12:30pm London time followed by Consumer Confidence data at 2pm.